If you’ve had a default placed on your credit file it can affect your financial situation in a number of ways. The drop in credit rating makes it more difficult to obtain borrowing, and in some cases, it can even affect your employment.
Defaults remain on a credit file for six years so this is a long-term impact rather than a temporary inconvenience, but if you believe the default is incorrect it’s important to contest it so your credit record reflects the true situation.
But how can you contest a default on your credit file, and what is the first step to take?
Three main credit reference agencies exist in the UK – Experian, Equifax, and TransUnion. The information held with each one can differ, however, so it’s important to order a copy from each agency.
If a default appears on one report, it could also be present on another, in which case you may need to contest an entry two or more times.
When a default is on your credit file, lenders believe there’s a likelihood you won’t pay your debts on time and may even stop repayments altogether - this illustrates just how damaging a default can be and why you need to contest it if it’s incorrect.
So why might a default marker have been incorrectly placed? Lenders and other creditors do make mistakes when reporting information to credit reference agencies, with errors potentially including:
If you would like more information on contesting a default marker, or any other aspect of your credit rating, please call Scotland Debt Solutions. We specialise in helping Scottish residents to escape debt, and can arrange a same-day meeting free-of-charge at one of our offices around Scotland.
Our Scottish based team can help advise you on your debt problems.
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you.
We have five offices located across Scotland. Find your nearest one here.
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts
A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt will be wiped out.
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.
Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC